Chinese telecommunications equipment maker Huawei and contract electronics manufacturer Flextronics will establish a joint plant in the Hungarian city of Pécs, Huawei Technologies Hungary managing director Gavin Dai said at a press conference on Monday.
Production at the plant, which will make optical network equipment, will start in December, Mr Dai said. By mid-2012, about 500 people will work at the plant, he added.
Flextronics Global Services Hungarian director Tibor Czakó said the two companies already cooperate in China, Brazil and Mexico, and now the partnership is coming to Pécs (SW Hungary).
More than 12,000 people work at four Flextronics bases in Hungary: in Zalaegerszeg, Sárvár, Tab and Budapest.
Huawei earlier worked with Elcoteq in Pécs, but the Finnish company recently filed for bankruptcy.
Huawei's and Flextronics' plant will make its first delivery to Huawei on December 5. By the end of 2011, headcount at the plant will reach 100, but a further 400 could be hired later on depending on orders.
The plant will not be a greenfield investment, rather existing infrastructure will be rented.
Flextronics and Huawei would reveal no further details about the partnership.
In press materials distributed by Huawei, the company said it would "keep the original target of generating revenue of USD 1.2bn in Hungary by the end of 2011 with just a few weeks delay".